Сompensation for purchasing Ukrainian agricultural machinery growing

The state will compensate farmers 20% of expenses on purchasing agricultural machinery made in Ukraine. Before, the compensation rate amounted to 15%. The corresponding decision has been approved by Ukraine’s Cabinet of Ministers today. According to the Minister of Agriculture and Food Taras Kutovyi, these changes will encourage Ukrainian manufacturers to produce quality agricultural machinery.

To receive the compensation for machinery purchase, farmers have to submit an application and documents confirming the purchase to a state bank. Then, not later than a month, the Ministry of Agriculture and Food Next will transfer the funds to the bank that will compensate the applicant 20% of the purchased equipment without VAT within a day.

Also, the Commission of the Ministry of Economic Development and Trade will make a list of equipment and manufacturers, applicable for the compensation value. 20% compensation support will be provided for the companies that have 35% localization degree in 2017, 45% – in 2018, 55% – in 2019 , and 60% – in 2020.

Reference: The degree of manufacture localization is the percentage of cost of raw materials, components, machinery, parts of domestic production.